What do you have to know about Contracts of Software?
Contracts
in the world of software have a niche for them popularly recognized as Software
Development Agreements, End User License Agreements, Software License
Agreements, Terms of Service, and Privacy Policy. It specifies the involved
party's legal duties to each other if any dispute arises and find ways for amicable
and agreed solutions.
What is Software Development
Agreement?
The
Software Development Agreements are in essence where one party, an actual
developer or a software industry developing the software agrees to develop a
software application for another party who is the client.
What are End-User License
Agreements?
End-User License Agreement (EULA) is an end-user license contract by the author of the
software and the user of the software. The user has his/her own tendency of
freedom to deny acceptance to the terms and conditions and can promptly click
‘Do not agree’ or ‘I Agree’ during install. Breaching EULA is not binding to
the law unless it meets certain contractual conditions of service.
What is a Software License
Agreement?
A
software license agreement is a legal contract agreement between the licensor/
author of the software and the user/purchaser of the software which technically
defines the purchasers' rights to the software. It's basically the copyright
license.
Software
License Agreements describe in detail ‘how and when’ of the software usages
with the restrictions that go with the software.
What are Terms of Service?
Terms
of Service are the legal agreements made between a service provider and the
user who is interested in the use of the software service provider. When the
user agrees to the terms of service (TOS), the service offered by the software
vendor and service provider can be used.
By
determining a set of regulations that the users agree to follow a Terms of
Service is legally binding. Terms of Service are otherwise known as the Terms
and Conditions Agreement.
This
provides a legal platform for the website or software and it's strongly
required to have one.
What is a Privacy policy?
The
privacy policy should determine what personal data is collected for use, how
they are collected, where it is stored and shared with third parties. And
importantly determine how users can limit the data is collected and withdraw
consent where and when necessary.
Unlike
all the above, a privacy policy is definitely needed by the law if the software
or application collects users' private data.
Each
one serves a purpose depending on the different software applications and
usage. Its good to have one or a combination of above to seal a good software
contract that benefits both the developer/vendor and the clients.

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